Intelligent Automation in Regulatory Reporting: Benefits, Limitations, and Risk Controls

Pratik Chawande

doi:10.70528/IJLRP.v5.i5.1795

Intelligent Automation in Regulatory Reporting: Benefits, Limitations, and Risk Controls

Author(s)	Pratik Chawande
Country	United States
Abstract	Regulatory reporting has become a very complicated and resource-consuming process of financial institutions, which is defined and influenced by global reporting standards, including Basel III and BCBS 239, as well as regional ones, including MiFID II and European Central Bank (ECB) guidelines. The manual form of reporting is still disjointed, tedious and prone to errors, causing the compliance expenses to increase and exposure to regulatory violations to be made. To combat such challenges, institutions are turning to intelligent automation (IA), which combines robotic process automation (RPA), artificial intelligence (AI), and RegTech solutions to achieve accuracy, efficacy, and transparency in the compliance process. This paper compares the manual and automated reporting processes with the focus on the efficiency, scalability, and auditability advantages of IA. Empirical evidence on the case indicates a major reduction in costs, a reduced submission timeline and enhanced alignment with the regulations. Nevertheless, there are still lingering threats, such as the quality of data, dependence on vendors, and regulatory fragmentation, as well as the issues of AI explainability and cybersecurity. The paper also advances the research on regulatory technology by pinpointing the advantages and limitations of IA and postulates on governance and risk-controlling systems to address the new challenges. This concludes that efficient governance, effective risk management and strong collaboration between regulators, banks and technological providers would be key towards achieving the transformational potential of IA in regulatory reporting.
Keywords	Intelligent Automation, banking compliance, regulatory reporting, robotic process automation (RPA), artificial intelligence, RegTech.
Published In	Volume 5, Issue 5, May 2024
Published On	2024-05-08
Cite This	Intelligent Automation in Regulatory Reporting: Benefits, Limitations, and Risk Controls - Pratik Chawande - IJLRP Volume 5, Issue 5, May 2024. DOI 10.70528/IJLRP.v5.i5.1795
DOI	https://doi.org/10.70528/IJLRP.v5.i5.1795
Short DOI	https://doi.org/g96dmd

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Intelligent Automation in Regulatory Reporting: Benefits, Limitations, and Risk Controls

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